Quixtar Basics

This page is written for the person brand new to Quixtar. It gives a brief introduction to the first level of the Quixtar compensation plan.

Quixtar is a MLM, Multi-Level Marketing opportunity. It is similar to a franchise except most franchises are granted exclusive territories or locations. However, in MLM a franchiser can usually recruit new franchises to add to their sales volume.

The goal of any MLM is sell some sort of product or service through non-traditional channels and recruit others utilizing personal contacts and then leveraging their reputation as a way to generate acceptance of the business opportunity.

MLM's and Quixtar work on the three pronged approach to sales:

    1. Personal consumption of the product
    2. Retail sales to friends, neighbors and relatives
    3. Recruiting people who become "downline distributors"

In Quixtar there are two ways to administer the business. In the old Amway business, everyone paid their downline their bonuses and also had to pick up product from their upline. Quixtar started paying distributors directly and offering direct shipment to each distributor's home, but a few groups within Quixtar still work by the old Amway methods. One such group is World Wide Dream Builders. This method is called "Standard fulfillment". The new Quixtar method is called "Direct fulfillment".

The basic idea to making money in the business is to build a business volume where you earn a high performance bonus percentage and your down line earns a smaller percentage. For instance if you were in the 21% bonus level, you would like your downline people to be in a bonus level that is much lower than yours, say of 12% or 15%. This way you can pocket 6%-9% on the sales of your downline. If you are paying out the same percentage to your downline as you earn, you will not make any money. One needs to have his downline earning a much lower percentage than one earns to be able to keep a fair portion of the bonus.

In Quixtar, the compensation or "performance bonus" is not based upon sales dollar volume but is based upon PV points and BV points. Each product in Quixtar has a "point value" or PV, and each product also as a "business volume" value or "BV". The BV and PV values are related to the product price as well as the gross profit Quixtar or partner stores have available on that product.

The number of PV points one has, determines the bonus percentage to be paid. This percentage can be anywhere from 3% to 25% of the BV (Business Volume) points.

The number of BV points determines how much commission is paid for a certain bonus level.

Commission paid = (PV percentage) x (number of BV points) - (Downline commissions)

(Downline commissions) = (PV percentage downline) x (number of BV pointsdownline)

Typically, Amway core product have more favorable BV and PV per sales dollar since the Amway products do not carry the sales and marketing costs of nationally advertised brand name articles. Brand name articles generally carry less favorable BV/PV/$ ratios. Since Quixtar can not obtain the brand name articles cheaper than the Wal-Marts and Costcos, they must offer lower total pay outs on these products to have any hope of selling them at a competitive price.

Quixtar has many different bonus percentage levels. At various levels of "PV", a percentage is paid on the "BV" business volume. At the 100 PV point level/month, there is the first bonus level of 3% of BV. Assume that the 100PV points had 200 BV points associated with it, then 3% of 200 BV would be paid as a bonus, or $6. You must have at least 100PV flowing through your business each month to get a bonus. Your bonus will be calculated only on the point value for that specific month.

Assume now that you recruit two people to the business, and each also have 100PV points. The combined volume of your business and theirs has 300PV and the combined business volume of 600 BV points. 300PV qualifies for a 6% bonus on "BV". Your gross bonus is then 6% of 600BV points (6% x 600) or $36. Each of your downline recruits is also entitled to a 3% bonus on their 200 points in Business Volume, since they each have 100PV. Each recruit is paid $6 (3% x 200 BV points). This leaves you with a net bonus of $24 ($36 - (2 x $6)). From this net bonus your business expenses will be subtracted to get a net profit or loss.

PV Points

Approx.
Sales $

Approx.
BV Points

Bonus % on BV

Total Bonus $'s paid

100

$250

200

3%

$6

300

$750

600

6%

$36

600

$1,500

1200

9%

$108

1000

$2,500

2000

12%

$240

1500

$3,750

3000

15%

$450

2500

$7,500

5000

18%

$720

4000

$10,000

8000

21%

$1050

6000

$15,000

12000

23%

$1840

7500

$22,500

15000

25%

$3750

The people you recruit are termed your "downline". Those above you, who recruited you and your sponsor are "upline". Those people in other lines of your sponsor's recruits are called "cross line".

If you personally sponsor many people under you then you will have a "wide" business. People you personally sponsor can be called "Legs". The graphic below has three legs.

If you help people below you sponsor many in a chain, deeper and deeper then you will have a "deep" business. A "wide" business is more profitable than a deep business. A "deep" business is supposed to be more stable than a wide business. Depth is needed so that the people you recruit and those that they recruit have the feeling the "pyramid" is growing. If it is not growing then the ones you recruit are not making much money.

A 1,000PV distributor with 9 personal sponsored 100 PV distributors would have gross bonuses of about $240. His downline are entitled to bonuses of 9 x $6 = $54. The net bonus would be $196.

A 1,100PV distributor with 1 personally sponsored 1000PV distributor would gross bonuses of about $264. His downline would be entitled to $240, so his net bonus would be $24. This demonstrates the importance of width to profitability. Quixtar pays out the net bonus amount so the distributor does not have to pay his downline anymore for groups on direct fulfillment.

As one expands up to 7500 points and is able to maintain this level for at least 6 months in a year they become a "direct distributor" or otherwise known as a platinum distributor and qualify for the largest bonus percentage of 25%. If one maintains 7500 PV for 12 months in a row then they become a Q12 Platinum direct distributor and earn a bonus of $10,000 for each year they qualify.

A 7,500 PV distributor with 74 personally sponsored 100PV distributors would have gross bonuses of $3,750. His downline is entitled to 74 x $6 = $444 in bonuses, so his net bonus is $3,306.

A 7,600PV distributor with just one personally sponsored leg of 75 distributors doing 7500 PV would net just $50 in bonuses since he has no other width, with which to leverage his 25% bonus percentage.

Once you help others to be come direct distributors then their volume splits off from yours and you will be entitled to a 4% residual from their business, provided they qualify for direct and you have at least 7500PV of volume in other legs in your own business, or you have two or more qualifying legs.

Once you sponsor e such direct distributors you can earn the title "Emerald Direct Distributor" status which qualifies you for the 4% from each of your three legs as well as additional bonuses.

Once you sponsor 6 such direct distributors you can earn the title "Diamond Direct Distributor" status which qualifies you for the 4% from each of your six legs as well as additional bonuses.

This is a simplified view and should be good enough to introduce the novice to how it basically works.

See also the 6-4-2 Sales and Marketing plan with expenses.

An explanation of the various Quixtar awards and pin levels.

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